San Antonio Express-News (Sunday)
As part of its health equity mission, CVS invests in affordable housing
CVS Health Corp. — a company most people associate with the pharmacies that fill their prescriptions — is helping tackle a shortage of affordable housing in the San Antonio area.
The health services company is investing $15.3 million with Pedcor Investments of Carmel, Ind., and WNC of Irvine, Calif., in a 312-unit complex for lower-income residents.
Construction recently began on Crosswinds Apartments Homes at 4114 N. Loop 1604 E., a complex that will include a mix of one-, two- and threebedroom apartments with amenities such as business and fitness centers, a community room, dog park, picnic area, playground and pool.
Rhode Island-based CVS Health has been making such investments nationwide. Last year, it plugged $185 million into affordable housing in 64 cities, enough to support development or renovation of more than 6,570 units.
It’s part of the company’s Health Zones initiative, which is aimed at reducing health disparities
and improving health equity in high-risk areas.
“CVS Health is committed to addressing housing insecurities and other social determinants of health in local communities,” LaMonte Thomas, South Central Market president at Aetna, a CVS Health company, said in a statement.
“In San Antonio, we’re focusing on addressing the affordable housing crisis by making investments that will provide people with equal opportunity for secure housing and access to resources that will help them create a brighter
future for themselves and their families,” he added.
Pedcor is also partnering with the San Antonio Housing Trust Public Facility Corp. to build the complex.
Under state law, the housing trust’s involvement provides a full property tax exemption for the project and the developer does not have to pay sales tax on construction purchases. In exchange, at least half of the units must be reserved for people with below-median incomes.
The bulk of the apartments at Crosswinds — 257
— will be for people earning up to 60 percent of the area median income, which is $31,140 annually for one person and $40,020 for a family of three.
Thirty-nine units will be for people making up to 50 percent of the area median income, or
$25,950 a year for one person and $33,350 for a family of three. The remaining 16 will be for people making up to 30 percent of the area median income, or $15,570 and $20,010, respectively.
The complex is expected to be finished in 2024.
“There is a direct correlation between stable affordable housing and the prospects for a family’s long-term health outcomes, especially for families at lower incomes,” said Pete Alanis, the trust’s executive director.
The public facility corporation is one of several arms of the housing trust and was created in 2009 to help finance developments. Since then, it has become a major producer of affordable housing in San Antonio.
The PFC has partnered with developers to build 26 apartment complexes and another 22 are under construction or in the planning phase, according to figures it provided. Those projects include a total of 12,220 units.
The trust has come under more scrutiny in recent years as housing advocates have questioned the housing provided in exchange for major tax breaks.
A 2019 report commissioned by the city showed that the trust operated with little oversight and often greenlighted housing that’s out of reach of the city’s poorest residents. And a 2020 study by the University of Texas School of Law indicated that housing produced by public facility corporations often is as expensive as market-rate apartments.
City and trust officials are making changes to the local trust, which has recently focused on securing more units at levels below 60 percent of the area median income, a level advocates say does not constitute affordable housing.
Five City Council members appointed by the mayor previously sat on two of the trust’s four boards and will now be part of all four. The boards also include nonvoting housing experts and community advocates who provide input on projects.